Associated British Foods hits back at claims it avoided tax in Zambia

Associated British Foods last night hit back at claims that it avoided tax in Zambia.

A hard hitting report from charity ActionAid said the firm behind Silver Spoon Sugar and Kingsmill paid less than 0.5 per cent of its $123m in pre-tax profits between 2007 and 2012 to the Zambian government.

It highlighted generous capital allowances and tax relief schemes enjoyed by the firm in the country.

But ActionAid also accused the firm of funnelling around a third of its pre-tax profits to sister companies in tax havens including Ireland, Mauritius and the Netherlands.

Associated British Foods hit back, arguing that it has received generous allowances because of its investment in a ‘world class sugar mill’ in Zambia.

In a strongly-worded statement it described the report as ‘incomplete at best and factually wrong in places’.

It also described allegations that it funnelled off profits to other regimes when the rate in Zambia is 10 per cent as ‘illogical’.